Computer-implemented value management tool for an asset intensive manufacturer

Abstract

A method of valuing resources of an asset intensive manufacturer. Calculations provide a MAV for each resource (machine) for each time horizon. The inputs for the calculations include the prices of products made by the resource, probalistic demand for the products, usage of the resource by various products, and availability of the resource. A series of equations, one equation associated with each resource, is formulated and solved, using lagrangian methods, with lagrangian multipliers representing resource values.

What is claimed is:  
     
       1. A computer-implemented method of valuing resources used in the manufacture of one or more products, comprising: 
       modeling the manufacturing process in terms of at least one time period, at least one resource, and one or more products;  
       providing a usage value for each product per resource;  
       providing an availability value for each resource;  
       providing a profit value for each product;  
       providing an allocation value for each product;  
       generating a demand function for the products;  
       generating a value equation for each resource based on the usage value, the availability value, the profit value, the allocation value, and the demand function;  
       solving the value equations to determine a resource value for each resource using a Lagrangian process, each equation being expressed with a multiplier that represents the resource value for the corresponding resource; and  
       making the resource values available for use in connection with a manufacturing process.  
     
     
       2. The method of claim  1 , wherein the demand function is based on a truncated normal distribution. 
     
     
       3. The method of claim  1 , wherein the profit values arc prorated for each product on each resource. 
     
     
       4. The method of claim  1 , further comprising: generating a revenue function for each product based on the allocation value, the profit value, and the demand function; and solving the revenue function for expected revenue of the product. 
     
     
       5. The method of claim  1 , wherein solving comprises iteratively setting initial values of the Lagrange multiplier and converging to new Lagrange multiplier values. 
     
     
       6. The method of claim  1 , wherein solving is performed using a binary tree. 
     
     
       7. The method of claim  1 , further comprising providing the resource values to a scheduling engine. 
     
     
       8. The method of claim  1 , wherein solving comprises formulating a set of Lagrange equations from the value equations, each Lagrange equation having a multiplier as the single unknown variable. 
     
     
       9. The method of claim  8 , wherein each Lagrangian equation is a sum of terms, each term associated with a usage value minus the availability value. 
     
     
       10. A computer-implemented system for valuing resources used in the manufacture of one or more products, comprising: 
       memory that stores a model of the manufacturing process in terms of at least one time period, at least one resource, and one or more products;  
       memory that stores a usage value for each product per resource, an availability value for each resource, a profit value for each product, and an allocation value for each product;  
       a process for generating a demand function for the products; and  
       a valuation engine for generating a value equation for each resource based on the usage value, the availability value, the profit value, the allocation value, and the demand function, the valuation engine operable to:  
       solve the value equations to determine a resource value for each resource using a Lagrangian process, each equation being expressed with a multiplier that represents the resource value for the corresponding resource; and  
       make the resource values available for use in connection with a manufacturing process.  
     
     
       11. The system of claim  10 , further comprising a demand forecast tool for providing demand data to the valuation engine. 
     
     
       12. The system of claim  10 , further comprising a pricing tool for providing product price data to the valuation engine. 
     
     
       13. The system of claim  10 , wherein the valuation engine further calculates expected revenue, using the allocation values, the profit values, and the demand function. 
     
     
       14. The system of claim  10 , further comprising a scheduling engine for generating manufacturing schedules based on the resource values. 
     
     
       15. The system of claim  10 , further comprising a master planning engine for determining product prices based on the resource values. 
     
     
       16. A computer-implemented method of valuing a resource used in the manufacture of one or more products, comprising: 
       modeling the manufacturing process in terms of at least one time period, the resource, and one or more products to be manufactured using the resource;  
       generating a value equation for the resource based on information concerning usage of the resource by the products, information concerning the availability of the resource, information concerning profits associated with the products, information concerning allocation of the products, and one or more demand functions associated with the products, the value equation including a multiplier that represents a resource value of the resource;  
       solving the value equation to determine the resource value; and  
       making the resource value available for use in connection with a manufacturing process.  
     
     
       17. The method of claim  16 , wherein the demand function is based on a truncated normal distribution. 
     
     
       18. The method of claim  16 , wherein the information concerning profits associated with the products comprises profit values that are prorated for each product for the resource. 
     
     
       19. The method of claim  16 , further comprising: 
       generating a revenue function for each product based on the allocation information, the profit information, and the demand function; and  
       solving the revenue function for expected revenue of the product.  
     
     
       20. The method of claim  16 , wherein solving is performed using a binary tree. 
     
     
       21. The method of claim  16 , further comprising providing the resource value to a scheduling, engine. 
     
     
       22. The method of claim  16 , wherein the value equation is solved using a Lagrangian process. 
     
     
       23. The method of claim  22 , wherein solving comprises iteratively setting an initial value of a Lagrange multiplier and converging to a new Lagrange multiplier value. 
     
     
       24. A computer-implemented system for valuing a resources used in the manufacture of one or more products, comprising: 
       a process operable to generate a demand function for one or more products; and  
       a valuation engine operable to:  
       generate a value equation for the resource based on information concerning usage of the resource by the products, information concerning the availability of the resource, information concerning profits associated with the products, information concerning allocation of the products, and one or more demand functions associated with the products, the value equation including a multiplier that represents a value of the resource;  
       solve the value equation to determine the resource value; and  
       make the resource value available for use in connection with a manufacturing process.  
     
     
       25. The system of claim  24 , wherein the valuation engine solves the value equation using, a Lagrangian process. 
     
     
       26. The system of claim  24 , further comprising a demand forecast tool for providing demand data to the valuation engine. 
     
     
       27. The system of claim  24 , further comprising a pricing tool for providing product price data to the valuation engine. 
     
     
       28. The system of claim  24 , wherein the valuation engine further calculates expected revenue, using, the allocation information, the profit information, and the demand function. 
     
     
       29. The system of claim  24 , further comprising, a scheduling engine for generating manufacturing schedules based on the values of the resources. 
     
     
       30. The system of claim  24 , further comprising a master planning engine for determining, product prices based on the values of the resources. 
     
     
       31. Resource valuation software embodied on a computer-readable medium and, when executed by a computer, operable to: 
       generate a value equation for a resource based on information concerning usage of the resource in the manufacture of one or more products, information concerning the availability of the resource, information concerning profits associated with the products, information concerning allocation of the products, and one or more demand functions associated with the products, the value equation including a multiplier that represents a value of the resource; and  
       solve the value equation to determine the value of the resource.